Carbonite (CARB)

Carbonite (CARB)

Postby winston » Thu Jul 04, 2019 2:20 pm

not vested

Carbonite (CARB)

For investors who appreciate business transformations, meanwhile, Carbonite (NASDAQ:CARB) might be the play.

Carbonite started as a largely consumer-focused company. But it has expanded into small and medium businesses with help from an aggressive M&A strategy.

That strategy continued this year, with the recently closed $619 million acquisition of Webroot. Yet even with those deals driving growth, CARB looks reasonably cheap.

Pro forma for the Webroot purchase, the stock trades at 11-12x 2019 EBITDA guidance. Looking to 2020, analysts see well over $2 per share in EPS.

With a sharp pullback of late, that suggests just an 11x forward EPS multiple. That might be far too cheap — particularly if the strategy here is on point. While larger rivals chase larger deals, Carbonite might be able to create value by chasing smaller fish.

Source: Investor Place
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